Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run.
B) is lower than in the short run.
C) is the same as in the long run.
D) does not depend on the fact that ice cream can be frozen.

Question

Quizplus · Accepted Answer

In the short run, consumers have less time to adjust their consumption habits, so the demand is less elastic. Over time, they can find substitutes or change preferences, making demand more elastic in the long run.

Ice Cream Can Be Frozen